Description
An excel Spreadsheet showing the workings of the MSDI - Alcala De Henares Case
Tax rate
35% 1988 1989 88,662 535 187 69,808 6,152.5 2,153 14,221 1990 93,686 535 187 73,763 6,152.5 2,153 14,916 1991 97,634
Semiautomatic Depreciation Depreciation tax shield New Depreciation Depreciation tax shield Differential cash flow Alternative 1 Case I NPV in Pts Case II NPV in Pts Case III NPV in Pts Case IV NPV in Pts Alternative 2 Case I Rates (Expected inflation) Cash flows in US$ NPV in US$ NPV in Pts Case II Rates (Historical inflation) Cash flows in US$ NPV in US$ NPV in Pts Case III Rates (Forward rates) Cash flows in US$ NPV in US$ NPV in Pts Case IV Rates (Interest rates) Cash flows in US$ NPV in US$ NPV in Pts (60,346)
88,496 535 187 69,676 6,152.5 2,153 14,199
76,872 6,152.5 2,153 15,649
12,117.4
3,791.7
93,141.4
5,855.7
127 (475.2) $95.4 12,117.4
131.9 107.7
137.0 103.8
142.2 104.9
147.7 106.0
127 (475.2) $29.9 3,791.7
135.6 104.7
144.8 98.2
154.6 96.5
165.1 94.8
127 (475.2) $733.4 93,141.4
113.8 124.8
102.0 139.5
91.4 163.2
81.9 191.1
127 (475.2) $46.1 5,855.7
134.6 105.5
142.7 99.7
151.2 98.6
160.3 97.6
1992 101,091
1993 104,872
1994 109,101
1995 113,765
1996 119,012
1997 124,872
79,594 6,152.5 2,153 16,126
82,571 6,152.5 2,153 16,649
85,901 6,152.5 2,153 17,233
89,573 6,152.5 2,153 17,878
93,704 6,152.5 2,153 18,604
98,318 6,152.5 2,153 19,413
153.4 105.1
159.3 104.5
165.4 104.2
171.8 104.1
178.4 104.3
185.2 104.8
176.2 91.5
188.2 88.5
200.9 85.8
214.5 83.3
229.0 81.2
244.5 79.4
73.4 219.8
65.7 253.3
58.9 292.5
52.8 338.7
47.3 393.3
42.4 458.1
169.9 94.9
180.1 92.5
190.8 90.3
202.3 88.4
214.4 86.8
227.2 85.4
Book value of old machine Sale of old machine Tax benefit on loss Purchase of new machine Outflow
1605 950 229 (61,525) (60,346)
Tax rate
35% 1988 1989 1990 1991
Savings in Cash Expenses Depreciation in Existing Case Depreciation in New Equipment Savings in Depreciation
18820 535 6218 5683
18854 535 6218 5683
19923 535 6218 5683
20762 6218 6218
Differential cash flow Alternative 1 Case I NPV in Pts Case II NPV in Pts Case III NPV in Pts Case IV NPV in Pts Alternative 2 Case I Rates (Expected inflation) Cash flows in US$ NPV in US$ NPV in Pts Case II Rates (Historical inflation) Cash flows in US$ NPV in US$ NPV in Pts Case III Rates (Forward rates) Cash flows in US$ NPV in US$ NPV in Pts Case IV Rates (Interest rates) Cash flows in US$ NPV in US$ NPV in Pts
(60,575)
14,222
18,854
19,923
20,762
32,380.4
21,300.2
140,908.9
24,044.9
127 (477.0) $255.0 32,380.4
131.9 107.8
137.0 137.7
142.2 140.1
147.7 140.6
127 (477.0) $167.7 21,300.2
135.6 104.9
144.8 130.2
154.6 128.9
165.1 125.8
127 (477.0) $1,109.5 140,908.9
113.8 125.0
102.0 184.9
91.4 218.0
81.9 253.6
127 (477.0) $189.3 24,044.9
134.6 105.7
142.7 132.1
151.2 131.7
160.3 129.5
1992
1993
1994
1995
1996
1997
21497 6218 6218
22301 6218 6218
23200 6218 6218
24192 6218 6218
25308 6218 6218
26554 6218 6218
WDV Purchase Sale New WDV Outlay Tax
21,497
22,301
23,200
24,192
25,308
26,554
153.4 140.2
159.3 140.0
165.4 140.3
171.8 140.8
178.4 141.9
185.2 143.4
176.2 122.0
188.2 118.5
200.9 115.5
214.5 112.8
229.0 110.5
244.5 108.6
73.4 293.0
65.7 339.2
58.9 393.8
52.8 458.3
47.3 535.1
42.4 626.5
169.9 126.5
180.1 123.9
190.8 121.6
202.3 119.6
214.4 118.0
227.2 116.9
1605 61525 950 62180 60575 0.35
Spot rate WACC in US Expected inflation in Spain Expected inflation in US Expected Spot rate factor ( Expected Inflation rate) WACC in spain
127 13.0% 8% 4% 1.0385 17.3%
Historical inflation in Spain Historical inflation in US Expected Spot rate factor ( Historical Inflation rate) WACC in Spain
0.088 0.019 1.0677 20.7%
1- Month forward rate 3 month forward rate Expected Spot rate factor ( Forward rates rate) WACC in Spain
125.85 123.7 0.8961 1.3%
Interest in Spain Interest in US Expected Spot rate factor ( Interest rate) WACC in Spain
0.15 0.085 1.0599 19.8%
doc_366102559.xls
An excel Spreadsheet showing the workings of the MSDI - Alcala De Henares Case
Tax rate
35% 1988 1989 88,662 535 187 69,808 6,152.5 2,153 14,221 1990 93,686 535 187 73,763 6,152.5 2,153 14,916 1991 97,634
Semiautomatic Depreciation Depreciation tax shield New Depreciation Depreciation tax shield Differential cash flow Alternative 1 Case I NPV in Pts Case II NPV in Pts Case III NPV in Pts Case IV NPV in Pts Alternative 2 Case I Rates (Expected inflation) Cash flows in US$ NPV in US$ NPV in Pts Case II Rates (Historical inflation) Cash flows in US$ NPV in US$ NPV in Pts Case III Rates (Forward rates) Cash flows in US$ NPV in US$ NPV in Pts Case IV Rates (Interest rates) Cash flows in US$ NPV in US$ NPV in Pts (60,346)
88,496 535 187 69,676 6,152.5 2,153 14,199
76,872 6,152.5 2,153 15,649
12,117.4
3,791.7
93,141.4
5,855.7
127 (475.2) $95.4 12,117.4
131.9 107.7
137.0 103.8
142.2 104.9
147.7 106.0
127 (475.2) $29.9 3,791.7
135.6 104.7
144.8 98.2
154.6 96.5
165.1 94.8
127 (475.2) $733.4 93,141.4
113.8 124.8
102.0 139.5
91.4 163.2
81.9 191.1
127 (475.2) $46.1 5,855.7
134.6 105.5
142.7 99.7
151.2 98.6
160.3 97.6
1992 101,091
1993 104,872
1994 109,101
1995 113,765
1996 119,012
1997 124,872
79,594 6,152.5 2,153 16,126
82,571 6,152.5 2,153 16,649
85,901 6,152.5 2,153 17,233
89,573 6,152.5 2,153 17,878
93,704 6,152.5 2,153 18,604
98,318 6,152.5 2,153 19,413
153.4 105.1
159.3 104.5
165.4 104.2
171.8 104.1
178.4 104.3
185.2 104.8
176.2 91.5
188.2 88.5
200.9 85.8
214.5 83.3
229.0 81.2
244.5 79.4
73.4 219.8
65.7 253.3
58.9 292.5
52.8 338.7
47.3 393.3
42.4 458.1
169.9 94.9
180.1 92.5
190.8 90.3
202.3 88.4
214.4 86.8
227.2 85.4
Book value of old machine Sale of old machine Tax benefit on loss Purchase of new machine Outflow
1605 950 229 (61,525) (60,346)
Tax rate
35% 1988 1989 1990 1991
Savings in Cash Expenses Depreciation in Existing Case Depreciation in New Equipment Savings in Depreciation
18820 535 6218 5683
18854 535 6218 5683
19923 535 6218 5683
20762 6218 6218
Differential cash flow Alternative 1 Case I NPV in Pts Case II NPV in Pts Case III NPV in Pts Case IV NPV in Pts Alternative 2 Case I Rates (Expected inflation) Cash flows in US$ NPV in US$ NPV in Pts Case II Rates (Historical inflation) Cash flows in US$ NPV in US$ NPV in Pts Case III Rates (Forward rates) Cash flows in US$ NPV in US$ NPV in Pts Case IV Rates (Interest rates) Cash flows in US$ NPV in US$ NPV in Pts
(60,575)
14,222
18,854
19,923
20,762
32,380.4
21,300.2
140,908.9
24,044.9
127 (477.0) $255.0 32,380.4
131.9 107.8
137.0 137.7
142.2 140.1
147.7 140.6
127 (477.0) $167.7 21,300.2
135.6 104.9
144.8 130.2
154.6 128.9
165.1 125.8
127 (477.0) $1,109.5 140,908.9
113.8 125.0
102.0 184.9
91.4 218.0
81.9 253.6
127 (477.0) $189.3 24,044.9
134.6 105.7
142.7 132.1
151.2 131.7
160.3 129.5
1992
1993
1994
1995
1996
1997
21497 6218 6218
22301 6218 6218
23200 6218 6218
24192 6218 6218
25308 6218 6218
26554 6218 6218
WDV Purchase Sale New WDV Outlay Tax
21,497
22,301
23,200
24,192
25,308
26,554
153.4 140.2
159.3 140.0
165.4 140.3
171.8 140.8
178.4 141.9
185.2 143.4
176.2 122.0
188.2 118.5
200.9 115.5
214.5 112.8
229.0 110.5
244.5 108.6
73.4 293.0
65.7 339.2
58.9 393.8
52.8 458.3
47.3 535.1
42.4 626.5
169.9 126.5
180.1 123.9
190.8 121.6
202.3 119.6
214.4 118.0
227.2 116.9
1605 61525 950 62180 60575 0.35
Spot rate WACC in US Expected inflation in Spain Expected inflation in US Expected Spot rate factor ( Expected Inflation rate) WACC in spain
127 13.0% 8% 4% 1.0385 17.3%
Historical inflation in Spain Historical inflation in US Expected Spot rate factor ( Historical Inflation rate) WACC in Spain
0.088 0.019 1.0677 20.7%
1- Month forward rate 3 month forward rate Expected Spot rate factor ( Forward rates rate) WACC in Spain
125.85 123.7 0.8961 1.3%
Interest in Spain Interest in US Expected Spot rate factor ( Interest rate) WACC in Spain
0.15 0.085 1.0599 19.8%
doc_366102559.xls